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1 . Acme Dynamite is maintaining a solid debt ratio of . 3 7 with total assets of $ 1 , 2 5 0 million.

1. Acme Dynamite is maintaining a solid debt ratio of .37 with total assets of $1,250 million. If its D/E ratio is .65 and it has NOI of $150 million, what is its return on equity?
a.27.6%
b.21.1%
c.14.6%
d.8.9%
e. None of the above.
2. Now that you calculated the ROE for Acme Dynamite, how much debt does it have?
a. $711.5
b. $358.6
c. $437.5
d. $462.5
e. None of the above.

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